DoorDash Dasher Taxes in Washington - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in Washington

Navigating the bustling streets of Seattle, Tacoma, or Spokane as a DoorDash Dasher offers flexibility, but also brings tax responsibilities. As an independent contractor, earnings from DoorDash are considered self-employment income, requiring careful attention during tax season.

The IRS requires all DoorDash Dashers to report their income on Schedule C (Profit or Loss from Business) with Form 1040. Crucially, this income is also subject to self-employment tax, covering both Social Security and Medicare taxes, which are not automatically withheld from your DoorDash payouts. Failure to account for these taxes can result in penalties and interest.

How Washington Handles Gig Worker Taxes

Washington is unique among states for not having a personal income tax. However, this doesn't mean gig workers are exempt from all taxes. Washington levies a Business & Occupation (B&O) tax, a gross receipts tax applied to the revenue of businesses operating within the state. For most DoorDash Dashers, the threshold for owing B&O tax is relatively high – generally, gross income exceeding $28,000. However, it’s essential to be aware of this tax, especially if earnings are substantial. The B&O tax rate varies depending on the business activity, and delivery services fall under a specific classification. Even if you don't anticipate owing B&O tax, maintaining accurate records of all income is vital. It's also important to note that while there's no state income tax, Washington does collect sales tax on certain services, but this is typically handled by DoorDash and not directly by the Dasher. Staying informed about these nuances is key to compliant tax filing.

For detailed information and current B&O tax rates, please visit the Washington State Department of Revenue: https://dor.wa.gov/

Top Tax Deductions for Washington Drivers

• Standard Mileage: The most popular and often most beneficial deduction. For the 2025 tax year, the standard mileage rate is 70 cents per mile. Given Washington’s often-higher gas prices, especially in the Puget Sound region, carefully consider if tracking actual expenses might yield a larger deduction.
• Tolls & Parking: While Washington doesn’t have extensive toll road networks like some states, any tolls incurred during deliveries are deductible. Parking fees directly related to deliveries are also deductible.
• Phone & Data Plan: If you use your personal phone for DoorDash, you can deduct the percentage of your monthly bill that corresponds to business use. Keep a log of the time and mileage driven for work to support this deduction.
• Vehicle-Related Costs: Expenses like car washes to maintain a professional appearance, phone mounts, insulated food bags, and dash cams are all deductible business expenses.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses (like gas, oil changes, repairs, and insurance) in the same tax year. Choose the method that results in the largest deduction.

Understanding the 15.3% Self-Employment Tax

As a DoorDash Dasher, you are considered self-employed. This means you are responsible for paying both the employer and employee portions of Social Security and Medicare taxes. This combined tax rate is 15.3% on net earnings exceeding $400. DoorDash and other gig platforms do not withhold these taxes from your earnings, so it’s crucial to plan for this liability throughout the year, potentially through quarterly estimated tax payments to avoid penalties.